Your friend Wanda established her gourmet dog treat business, Salty Pawz, using personal funds, since she initially sold her products only to friends and family and was able to pay for everything as she went along. Now that the business is growing, she knows she cannot finance the expansion out of her own pocket, so she is considering taking out a loan. She has no experience with financial institutions, other than the basics such as managing her personal bank accounts, a credit card, a mortgage and a car loan, all of which are with the local credit union.
You offer to help out Wanda by explaining the various options available to her at this stage in her businesss development. Write an email to her addressing the following areas:
Describe 2 options Wanda has for raising capital for her business (for example
1. take a term loan (eg 1 year)
2. look for investors to fund her business in exchange for ownership in her company
– Explain the advantages and disadvantages of each funding method.
– Offer a recommendation for the method you feel is the best fit for Wandas business. Be sure to include your reasons for making that recommendation.
LICENSES AND ATTRIBUTIONS
Revision and Adaptation. Authored by: BNED. License: CC BY: Attribution (Links to an external site.)
Assignment: Show Wanda the Money. Authored by: Linda Williams and Lumen Learning. Source: https://courses.lumenlearning.com/wmopen-introbusiness/chapter/assignment-show-wanda-the-money/ (Links to an external site.). License: CC BY: Attribution (Links to an external site.)
